Social Security in the sun: Using your U.S. benefits to retire in the Dominican Republic

Imagine trading snow shovels for sand and letting your Social Security check work under Caribbean skies. For many Americans, retiring in the Dominican Republic isn’t just a dream—it’s an affordable reality.

The U.S. Social Security Administration currently sends benefits to more than 700,000 Americans living abroad in over 180 countries. From Portugal to Panama, retirees are finding ways to stretch their dollars in places where the cost of living is lower and the pace of life is slower. Among those destinations, the Dominican Republic stands out—not just for its tropical climate and vibrant culture, but also for how easy it is to receive and manage U.S. benefits here.

Whether you prefer the mountain views of Jarabacoa, the energy of Santiago, or the coastal calm of Las Terrenas or Punta Cana, your monthly Social Security payment can go a long way. The key is understanding how to access it, transfer it, and make it last.

Can you receive U.S. Social Security in the DR?

Yes. U.S. citizens can collect retirement, disability, or survivor benefits while living in the Dominican Republic. The country is approved by the Social Security Administration (SSA) to receive payments abroad.

• Keep your contact information up to date with the SSA.
• Respond to the periodic eligibility forms they send.
• For local help, contact the Federal Benefits Unit (FBU) at the U.S. Embassy in Santo Domingo: FBU.Santo.Domingo@ssa.gov

Note: Supplemental Security Income (SSI) is not paid outside the U.S.

How payments work

Most retirees have their benefits deposited into a U.S. bank account, then transfer funds to the DR as needed. You can also open a Dominican account (in pesos or U.S. dollars) with banks like Banreservas, Banco Popular, or Scotiabank, all of which support international transactions.

• Benefits are paid in U.S. dollars and converted to pesos when withdrawn locally.
• Debit cards work at most ATMs, but check for foreign transaction or withdrawal fees.

Tips for transferring money with minimal fees

Moving money between your U.S. and Dominican accounts doesn’t have to be expensive. Here’s how retirees keep fees low:

1. Use Wise (TransferWise): Excellent exchange rates and low, transparent fees.
2. Remitly or Xoom: Ideal for fast, smaller transfers with direct deposits or cash pickups.
3. Ask your Dominican bank: Some waive incoming wire fees for U.S. dollar deposits.
4. Avoid traditional wire transfers: They often charge high flat fees and poor exchange rates.

Cost of living: Your dollar goes further

One of the biggest perks of retiring in the DR is the value you get for your money.

• A single retiree can live comfortably on $1,500–$2,000/month, while couples often budget around $2,500.
• Rent in mid-sized cities like Santiago averages $850-$1100/month.
• Renting in smaller cities or in suburban/non-tourist areas of the Country like La Vega or Moca can be way more economical, ranging in the $400-$600.
• Fresh local produce and dining out are affordable, while imported items cost more.
• Health care is high-quality and a fraction of U.S. prices.

Overall, expenses in the DR can be 30%–40% lower than in the U.S., allowing retirees to enjoy a higher quality of life without stretching their savings.

Banking, taxes & residency

• Banking: Keep both a U.S. and Dominican account for flexibility.
• Taxes: U.S. citizens must still file taxes annually, but Social Security benefits are not taxed locally.
• Residency: The Pensionado visa offers an easy path for retirees earning at least $1,500/month in guaranteed income.

More retirees are choosing to own rather than rent in the Dominican Republic—especially within full-service residential communities that offer 24-hour security, resort-style amenities, and no property tax for up to 15 years under the CONFOTUR law. Many of these developments also feature low HOA fees, community pools, gyms, and beachfront or golf access, giving retirees comfort and peace of mind without breaking the bank.

As a real estate professional helping expats and retirees invest across the Country, I guide clients through every step—from selecting the right community to understanding the legal process of buying abroad.

So, if you’ve ever dreamed of living out your golden years in the Caribbean, now might be the time to turn that dream into your new address.

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About the author

Rosalyn Ortega-Elie is a real estate investor, business coach, and owner of Smart Caribbean Properties. She specializes in helping international investors find the right property in the Dominican Republic while also guiding clients on how to monetize their expertise through digital businesses that thrive across borders. Connect with her on Instagram @ smartcaribbean_ or reach out via email at: info@smartcaribbeanproperties.com.